The European Bank for Reconstruction and Development (EBRD) has announced a US$22 million financing package for Spinneys Levant Limited, one of Lebanon’s leading food retailers operating through its subsidiary Gray Mackenzie Retail Lebanon SAL. The funding is designed to support the company’s expansion plans, strengthen the resilience of Lebanon’s food retail sector, and advance sustainable business practices during a period of ongoing economic uncertainty in the country.
The financing package includes a US$20.5 million senior loan from the EBRD alongside a US$1.5 million co-investment grant. These funds will support the company’s capital expenditure programme in Lebanon, including the expansion of its retail network and increased production capacity through the creation of a fresh snack production line. The project is also backed by a first-loss guarantee provided by the European Union under the European Fund for Sustainable Development Plus framework, helping reduce investment risk and encourage sustainable private-sector development.
A significant portion of the financing will be directed toward energy efficiency improvements across both existing and new retail outlets. These measures are expected to substantially reduce energy consumption and lower greenhouse gas emissions, with projected annual reductions of more than 5,400 tonnes of carbon dioxide and energy savings exceeding 150,000 gigajoules. The company also plans to improve environmental sustainability by reducing plastic bag use by 25 percent and introducing fully recyclable bags to increase circularity in retail packaging.
Spinneys has already introduced several environmentally focused initiatives in Lebanon, including efforts to reduce single-use plastics, improve waste management, encourage recyclable packaging, and modernize operations through more energy-efficient technologies. The latest investment is expected to further strengthen the company’s position as a leader in sustainable retail practices within the Lebanese market.
In addition to financial support, the EBRD will provide a technical cooperation package aimed at enhancing workforce skills and employability. The initiative will introduce new training programmes focused on retail management, brand management, digital marketing, automation of retail processes, and AI-enabled operations. Environmental sustainability topics, including reducing plastic waste and improving operational efficiency, will also form part of the training programme. These efforts are intended to strengthen staff resilience and create new opportunities amid Lebanon’s difficult socio-economic conditions.
The transaction was advised by Broadgate Advisers, while the broader financing framework falls under the European Union’s EFSD+ initiative, which mobilizes public and private investment for sustainable development in partner countries. Since beginning operations in Lebanon, the EBRD has invested more than €864 million in projects aimed at strengthening private-sector competitiveness, promoting sustainable energy, improving trade finance, and enhancing the quality of public services across the country.
